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Step by step solution needed for each part with answers thanks The following information has been extracted from the accounting records of Knight plc: Trial
Step by step solution needed for each part with answers thanks
The following information has been extracted from the accounting records of Knight plc: Trial Balance as at 30 September 2014 Administration costs (000s) 120 Application monies Bank overdraft Debenture interest Deferred taxation 12 180 Fixtures (cost) Fixtures (depreciation) Inventories as at 1 October 2013 Mortgage debenture 6% 2016 Machinery (cost) Machinery (depreciation) 100 324 100 1,400 Rent, rates and insurance of factory Retained earnings at 1 October 2013 2,640 Share capital 25p ordinary shares Trade payables Trade receivables 164 Additional information: (a) he application monies represent the monies paid for a recent issue of 200,000 new shares. The issue price was 30 pence payable in full on application. No entries have yet been made in the accounting records to update the records in respect of this issue. (b) Adividend of 20,000 was paid during the year in respect of the previous financial year and the directors have proposed a dividend of 10,000 in respect of the current year (c) Depreciation is yet to be charged as follows: Fixtures depreciation is 25% on cost. Machinery depreciation is 20 % of the reducing balance (d) he tax charge is estimated as 20,000 (e) Closing inventories at 30 September 2014 are 260,000. (0) Prepare Knight pic's statement of profit or loss for the year ended 30 September 2014, its statement of financial position and its statement of changes in equity at that date. These should be in a form suitable for publication. (17 marks) (ii) Analyse and comment on the liquidity position of Knight plcStep by Step Solution
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